There’s a lot of uncertainty surrounding the economy at the moment and like us, many SMEs are wondering how they might survive.
Everyday stricter measures are being enforced and as a result, workflow is gradually coming to a standstill. The government is offering support; however, will this be enough?
Like you, we don’t profess to be experts on the matter, but the nine points below should give you some useful starter points and help steer you in the right direction. If not, they will certainly provide food for thought.
Things to do in this time of crisis:
1. There is an HMRC Time To Pay Scheme. This extends terms of some payments to HMRC. Time to Pay should be used to conserve cash - CALL 0300 200 3835
2. You can delay tax year end by 6 months to offset losses over next 6 months or so. This will reduce corporation tax payments in the short / medium term.
3. Don't forget R&D tax credits bring in useful cash.
4. Assess your customers - avoid likely bad debts.
5. CASH is king - update your short-term cash forecast. Look at likely 3-6-month scenarios from a cash point of view.
6. Access BUSINESS INTERRUPTION LOAN SCHEME for up to £5m - there could be teething problems at the start but be the first in the queue with your bank.
7. Job Retention Scheme with government paying 80% of wages if an employee is "furloughed". Understand your options and decide what is right for your business (mothball or partly close down?).
8. Mortgage and lease holidays are already available from banks and other lenders. Grants and rate rebates appear to be for the hospitality sector only. Find out about this through financial services.
9. Insurance claims are possible if you have a pandemic clause in your agreement with the insurer. Check your policy.
We hope you found those points helpful.